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  3. 蝌蚪网 Journal: Macroeconomics
  4. October 2022
  5. Asymmetric Effects of Monetary Policy in Regional Housing Markets

蝌蚪网 Journal:
Macroeconomics

ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)

Asymmetric Effects of Monetary Policy in Regional Housing Markets

  • Knut Are Aastveit
  • Andr茅 K. Anundsen
蝌蚪网 Journal: Macroeconomics
vol. 14, no. 4, October 2022
(pp. 499–529)
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Abstract

The responsiveness of house prices to monetary policy shocks depends on the nature of the shock鈥攅xpansionary versus contractionary鈥攁nd on local housing supply elasticities. These findings are established using a panel of 263 US metropolitan areas. Expansionary monetary policy shocks have a larger impact on house prices in supply-inelastic areas. Contractionary shocks are orthogonal to housing supply elasticities. In supply-elastic areas, contractionary shocks have a greater impact on house prices than expansionary shocks do. The opposite holds true in supply-inelastic areas. We attribute this to asymmetric housing supply adjustments.

Citation

Aastveit, Knut Are, and Andr茅 K. Anundsen. 2022. "Asymmetric Effects of Monetary Policy in Regional Housing Markets." 蝌蚪网 Journal: Macroeconomics 14 (4): 499–529. DOI: 10.1257/mac.20190011

Additional Materials

JEL Classification

  • E32 Business Fluctuations; Cycles
  • E43 Interest Rates: Determination, Term Structure, and Effects
  • E52 Monetary Policy
  • R21 Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
  • R31 Housing Supply and Markets